Azerbaijan's economy shrank by 4.5% in the first four months of 2024
Azerbaijan's GDP decreased by 4.5% in the first four months of 2024, amounting to 38.18 billion manats ($22.45 billion). This indicates a significant decline compared to the same period in 2023, which is largely due to a drop in oil revenues.
The traditionally dominant oil and gas sector experienced a slight decline of 0.2% during this period. In contrast, the non-oil and gas sector showed growth, increasing by 8.7%. However, this positive indicator was spoiled by a noticeable decline in industrial production – by 13.2%.
As a result, the share of industry in the GDP structure decreased from 46.8% to 40.3%. Other key sectors also contributed to GDP: trade and repair of vehicles accounted for 9.5%, transport and warehousing - 6.9%, construction - 6%, agriculture, forestry and fisheries - 3.1%, tourist accommodation and catering - 2.4%, as well as information and communications - 1.7%. The rest of the economy accounted for 20%, while taxes accounted for 10.2% of GDP.
During the reporting period, GDP per capita decreased from 3,945.5 manats to 3,748.1 manats, reflecting the broader economic problems facing the country.
The State Statistics Committee predicts that Azerbaijan's GDP growth in 2024 will be lower and will amount to 2.4%, which underlines the need for further diversification of the economy and its stability in the face of fluctuations in global oil markets.
However, a discrepancy has emerged regarding the GDP figures reported by various sources. Government and pro-government media outlets, citing the State Statistics Committee, reported a GDP growth of 4.3% for the same period. This conflicting information necessitates clarification from the State Statistics Committee to explain how the reported recession transformed into apparent GDP growth.
The basis for this analysis stems from a comparative review of reports from the State Statistics Committee for January-April 2023 and 2024. The discrepancy highlights the critical need for transparency and accuracy in economic reporting to maintain public trust and informed decision-making.
Economics
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